Wall Street falls, Caterpillar latest to miss on sales
By Caroline Valetkevitch | October 23, 2012 6:14 AM EST
Stocks tumbled on Monday as investors worried that slower global growth is hitting corporate sales despite earnings that beat expectations.
Caterpillar also slashed its 2012 forecast for the second time this year, warning the global economy was slowing faster than it had expected.
With this reporting period, investors are looking at both sides of the earnings story, with earnings beating lowered expectations, but revenues coming in weak and profit warnings staying at a high level.
"The majority of earnings so far have been on the weak side and a number of high-profile companies have issued profit warnings, making investors a little more cautious about the outlook for profits in 2013," said Michael Sheldon, chief market strategist at RDM Financial, in Westport, Connecticut.
Of the 123 S&P 500 companies that have reported results, 60.2 percent have topped analysts' expectations for earnings, but 61 percent have missed revenue forecasts, according to Thomson Reuters data.
Third-quarter earnings are expected to fall 2.4 percent from a year ago, according to Thomson Reuters data.
The S&P 500 broke below its 50-day moving average around 1,434, which had proven to be a strong support level. A lasting break below that level could signal further declines.
Mining company Freeport-McMoRan
The Dow Jones industrial average <.DJI> fell 84.70 points, or 0.64 percent, at 13,258.81. The Standard & Poor's 500 Index <.SPX> dropped 8.80 points, or 0.61 percent, at 1,424.39. The Nasdaq Composite Index <.IXIC> slipped 3.69 points, or 0.12 percent, to 3,001.93.
Nine of the 10 industry sectors in the S&P 500 were lower, with only information technology higher, in part because of Apple's advance. Other tech gainers included Oracle
Coal miner Peabody Energy Corp's
After the closing bell, earnings reports are expected from Yahoo Inc
(Reporting by Caroline Valetkevitch; Additional reporting by Leah Schnurr; Editing by Jan Paschal)
Most Popular Slideshows
- Real Life ‘Frozen’: Snow Overwhelms The US, Kills 7; More To Come (Pictures)
- Angelina Jolie, Brad Pitt in Sydney for ‘Unbroken’ Red Carpet Premiere [PHOTOS]
- ‘The Walking Dead’ Season 5, Episode 8 Spoilers: Daryl Dixon Is Set To Burn The Place Down in ‘Coda’
- G20 Summit Awkward Moments: Putin Yawns, Mystery Bubbles Appear, F18 Drama Ensues
Join the Conversation
- Walmart Early Price Matching Special Event On Nov. 21, 2014 Matches Its Competitors' Black Friday 2014 Prices And Includes Exclusive Deals For Samsung LED HDTVs And iPad Air 2 [WATCH VIDEO]
- US Plane Flying Over Russian Skies Spotted; Vladimir Putin Ready For 'Practical Cooperation' With US
- Alleged 'Microsoft Lumia 1030' Front Panel Leaked With Capacitive Buttons; 'Xbox One' Owners To Get Free Goodies On Anniversary
- Nexus 6 Release Date And Price Under AT&T, T-Mobile And Sprint Listed
- Walmart Pre-Black Friday 2014 Sale On Nov. 21, 2014 Includes Discounts On The 'NBA 2K15' For PS4 And The 'Skylanders Trap Team’ Starter Kit [WATCH VIDEO]
- Black Friday 2014 Sale: Top Deals On Game Consoles Xbox One, PS4, Nintendo Wii U And More
- Cold War 2: Russia, China And North Korea’s Blacklisted Company Fortify Alliance -- Reports